Bryan Zhang, Executive Director and Co-Founder of Cambridge Centre for Alternative Finance: “In the context of global online alternative finance market which exceeded $300bn in 2016, the industries in Africa and the Middle East remain to be hugely under-developed.”

Earlier in June 2018, Judge Business School’s Centre for Alternative Finance released the second edition of its Annual Middle East & Africa Alternative Finance Industry report. These are our main 6 findings:

1. The total alternative finance market volume across the region grew by 48%, accounting for $358.87 million.

Source: Cambridge Centre for Alternative Finance

2. In Africa, the total online alternative finance market grew by 118% to reach $181.56m in 2016.

Source: Cambridge Centre for Alternative Finance

3. In the Middle East, the overall online alternative finance market grew slower with a minor year-on-year increase of 12% to achieve $177.3m in 2016.

Source: Cambridge Centre for Alternative Finance

4. Donation-based crowdfunding was the largest alternative finance model in Africa. In particular, funding channelled through online platforms came primarily outside of the Continent and provided by foreign donors and investors.

Source: Cambridge Centre for Alternative Finance

5. The most popular alternative finance model in the Middle East was equity-based crowdfunding.

Source: Cambridge Centre for Alternative Finance

6. Regulation remains to be a significant barrier for the development of online alternative industry in both Africa and the Middle East.